Could this signal the collapse of the AI bubble?
Yesterday, NVIDIA, a leading player in AI semiconductors, experienced significant stock price fluctuations.
During the morning trading session, NVIDIA’s stock surged by $4.55, or 4.4%, reaching $108.80. However, it reversed course in the afternoon, dropping over 4% and ultimately closing below the $100 mark.
This sharp decline occurred despite a series of positive developments. After the market closed the previous day, Supermicro (SMCI), a server and data center company, reported in its quarterly earnings that delays in the shipment of NVIDIA’s Blackwell semiconductors were not expected to cause significant issues.
NVIDIA had anticipated that integrating Samsung’s high bandwidth memory (HBM) into its AI platform would help partially alleviate supply constraints.
Delays in Blackwell shipments are not a major concern
During the quarterly earnings announcement on July 6, SMCI CEO Charles Liang addressed the shipment delays of Blackwell, NVIDIA’s next-generation AI semiconductor, stating they were not a major concern.
Liang explained that delays are typical in the semiconductor industry, especially when developing products with new technologies. He assured that despite the delays in Blackwell shipments, SMCI could continue supplying servers and data centers using the existing Hopper semiconductors.
While Liang could not specify the duration of the delays, he expressed optimism that semiconductor supply would remain relatively stable until at least the first quarter of the following year.
Samsung’s HBM
NVIDIA has managed to alleviate some of its supply chain issues. Recent reports indicate that Samsung’s HBM3E semiconductors have passed NVIDIA’s compatibility tests for AI semiconductors.
This development allows NVIDIA to source high bandwidth memory (HBM) from three major manufacturers: SK Hynix, Micron in the U.S., and Samsung. This diversification helps strengthen NVIDIA’s supply chain resilience.
Despite the positive news, stock prices plummeted
AI semiconductor-related stocks experienced a significant downturn on this day.
NVIDIA managed to recoup some losses 30 minutes before the market closed, yet it still finished the day down $4.00 (3.84%) at $100.25. Following a disappointing earnings report the previous day, SMCI’s stock plummeted nearly 20% despite optimistic projections and the announcement of a 10-for-1 stock split. It fell by $119.79 (19.42%) to $497.15. Micron’s stock also continued declining, dropping by $1.28 (1.43%) to $87.73, while Broadcom saw a decrease of $5.48 (3.81%) to $138.44.
Amid rising trends in the New York stock market, the downturn of these prominent stocks has raised concerns that the AI bubble may be gradually collapsing.
